Turkey has reportedly been using an Austrian bank to facilitate payments for Russian natural gas, enabling continued energy trade while avoiding violations of Western sanctions imposed after Russia’s invasion of Ukraine, according to a report by Middle East Eye.

Citing sources familiar with the arrangement, the report states that Banka Kreditna Družba (BKD), a small Austrian bank, has been acting as an intermediary for Turkish payments to Russia’s energy giant Gazprom. The arrangement allows Turkey to maintain its vital gas imports without triggering secondary sanctions, particularly from the United States and European Union.

According to the report, Turkish state energy company BOTAS transfers funds to the Austrian bank, which then channels the payments to Gazprom. This workaround, reportedly approved by Austria’s financial authorities, has raised eyebrows in some Western diplomatic circles, though it remains technically legal under current EU sanctions frameworks.

Neither the Turkish government nor Gazprom has publicly confirmed the existence of this arrangement. However, Middle East Eye notes that the method allows Turkey—heavily dependent on Russian energy—to insulate itself from the financial and political consequences of breaching sanctions directly.

The move reflects Ankara’s broader balancing act between East and West. While Turkey is a NATO member and has condemned Russia’s invasion of Ukraine, it has also avoided joining Western sanctions and continues to deepen energy and trade ties with Moscow.